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A study of the price discounts granted by Morton Salt Company and other producers of table salt in the U.S. on their sales of table salt to grocery wholesalers and retailers. The discounts were found to be illegal under the Robinson-Patman Act by the Federal Trade Commission and the Supreme Court. The Commission and the Court believed that the discounts were unjustified price concessions granted to “large” buyers, consistent with the concerns of the Robinson-Patman Act. However, the evidence indicates that the most common discount – the “carload discount” – was received by virtually all buyers, regardless of the buyer’s size; the other discounts – “annual volume” discounts – though received primarily by “large” buyers, were likely cost based. The history of the discounts and likely reasons why they were granted are explored in detail.

The impact of characteristics of salespeople, activities of sales managers and territory design are investigated as antecedents of sales organization performance among Canadian salesforces. Based on MANOVA analysis of responses from 102 field sales managers, more effective sales organizations have salespeople who are more motivated, employ managers who direct more and are more satisfied with the design of their territories. Sales managers must adopt better people and communication skills to train and direct their salespeople who are expected to provide better service and establish long‐term relations with their customers.

Examines the impact of manager and salesforce antecedents on sales organization effectiveness, using a sample of 146 Australian sales units. Indicates that sales manager monitoring, directing, evaluating and rewarding activities distinguish between high and low sales unit profitability and managers’ satisfaction with their units. Suggests that sales territory design displays significant differences between high and low sales/market share and unit satisfaction. Discovers that several salesperson characteristics and performance were significantly different between high and low customer satisfaction effectiveness and managers’ satisfaction with sales units. Highlights significant antecedent roles for sales manager and salesforce antecedents of sales organization effectiveness.

INTRODUCTION A large number of variables influence the approach of the marketing function to the problem of selling, including the state of technology, the economic environment, the social structure, the climate of the age (political, institutional, religious and educational), available communication media, skills which managers apply and so on. Yet personal selling is by far the major promotional method used to increase profitable sales by offering want satisfactions to markets and customers.

The strength of personal selling lies in the fact that it allows for communicative interchange, a process more subtle but, at the same time, more hazardous than classical methods such as advertising, which rely on one‐way communication. In terms of efficiency, communicative interchange results in a reduction of reach losses; it is of primary importance in the marketing of commodities which have to be explained or demonstrated to the buyer and particularly, therefore, in industrial marketing and the marketing of services. It is recognised, however, that personal selling is a relatively expensive means of communication.The author undertakes a taxonomical review of the various constituents of the personal selling scene, analysing the tasks involved and the composition of the sales force. In the latter half of the monograph he selects certain sales force management problems of special importance to discuss in greater detail with regard to the optimisation of efficiency and job statisfaction.

Examines how sales managers can affect and improve salesforce performance. Describes the similarities and differences between high‐ and low‐performance salesforces and the ways in which sales management can create the opportunity for salespeople to perform well. Discusses research implications and offers management guidelines to improve the effectiveness of sales organizations.

This case was written to help students develop their analytical and decision-making skills with regard to sales force evaluation. It identifies a variety of issues – in the Pakistani context particularly – within the sales force environment, including union representation, sales force team conflicts and power dynamics between superiors and subordinates. The various case lessons will enhance students’ analytical, negotiation and team-management skills. This case can be used to discuss the following issues: the complexity of objective and subjective evaluations of a sales force, sales force perceptions and cultural nuances for succeeding in Pakistan. Distribution structures and management in Pakistan. Characteristic features of the Pakistani pharmaceutical market. Students will be able to explain how salesperson performance information can be used to identify problems, determine their causes and suggest sales management actions to solve them. Students will be able to differentiate between an outcome-based and a behaviour-based perspective for evaluating and controlling salesperson performance. Students will understand how to control one’s behaviour in conflict situations by identifying common interests and achieving a “win-win” situation.

The Al-Ain case describes sales force management and sales force evaluation in a situation that involves a high-performing team operating in a hostile environment. Al-Ain eye centre (Al-Ain), located in the city of Karachi in Sindh state of Southern Pakistan, is a small-scale hospital that has diversified into the pharmaceutical business. Al-Ain’s product portfolio includes analgesics, antibiotics, ophthalmology products and cardiology products. This case focusses on team management and the relationship between a sales manager and subordinate salespeople in the context of Pakistani culture. A sales representative has received a poor performance assessment, which he perceives to be an unfair evaluation of his efforts. As a result of the situation, he subsequently joins a union and creates problems for his superiors. As they explore these management issues within a sales force, students will develop an appreciation for objective methods of sales force evaluation, as well as for the complexity of handling high-performing teams, the importance of employee perceptions and the scope of subjective biases in sales force evaluation that can emerge in practice.

The case is suited to undergraduate or MBA courses on sales management, organizational behaviour, distribution management, marketing/strategy and pharmaceutical industries. It addresses issues of sales force management, sales territory allocations, sales target fixation, team conflict, promotion, team bonus and distribution management in the pharmaceutical industry in Pakistan.

Teaching Notes are available for educators only.

CSS 8: Marketing.

Reports a study of sales management in UK companies, which explores the relationship between behaviour‐based control systems and outcome‐based control systems. Although conventional theory has suggested that behaviour performance and outcome performance result from different stimuli, we find that behaviour‐based control is positively associated with both behaviour performance and outcome performance. We find also that organizational commitment and sales territory design are significantly related to salesforce performance. This suggests a number of important avenues for improving salesforce performance. These findings and the growing emphasis on building long‐term, collaborative buyer‐seller relationships favour the use of behaviour‐based control systems in many sales management situations, and suggest a new agenda for management attention in improving salesforce effectiveness.

Rural Marketing, Sales and Distribution Management, Salesperson Motivation, Channel Management.

The case can be used in sales management, channel management and rural marketing courses offered to graduate students of MBA degrees. In the sales management courses, the emphasis is on understanding the typical tasks that the rural salesperson is required to conduct. The case can be used to design a suitable motivation-mix for a rural salesperson after analysing their approach towards work. In a rural marketing course, the case can be used to understand the sales and distribution management of fast-moving consumer good products in rural India. The case can be used in channel management courses to design an appropriate channel structure in the rural market in India and utilized for managing the distributors’ salesforce for effective and improved market coverage in rural areas.

Candy Confectioneries Private Limited started its operations in 1995, and was one of the largest confectionery players in India with a market share of 20 per cent. The company had achieved sales of Rs 20bn in 2014 and had 15 confectionery brands in the market. The company was also trying hard to establish itself in the snacks category. The company had nationwide operations, and it was important for the company to expand into the rural market. It served its markets through a comprehensive urban and rural distribution setup. In the rural distribution network, the rural sales representatives (RSRs) played a key role and perhaps were one of the most critical factors in covering the rural market. The RSR system was typical to suit the requirement of product-market coverage with its limitations. The case broadly profiles eight RSRs who were engaged to cover a specific territory in the State of Bihar in India. It also describes their approaches to work and complexities emerging thereof in achieving the best results for the organization.

The case has the following learning objectives: Understanding the design of sales and distribution channel structure followed for distribution and selling of confectionery products in rural India. Examining whether the existing system is adequate to achieve the goals of the firm. Evaluating the performance of each salesperson and identifying common factors to formulate the salesforce policies. Arriving at a suitable motivation-mix for the rural salesperson.

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CSS 8: Marketing.

Reports on a study investigating the ways in which companies organise their sales forces and research. Outlines one particular area of interest — the potential use to be made of information provided by the representatives to sales managers. Discusses differences between selling and marketing and how companies have attempted to incorporate this fact into their thinking and organisational frameworks, and welcomes this approach. Investigates the salesman's role and how it has altered in the last 20 years. Gives an example of types of salesman and what companies look for in candidates for sales jobs, these include: maintaining good relations with established customers and encouraging source loyalty; cold calls by commando salesmen whose role is to search out and establish new accounts; and specialist salesmen to handle distinctive requirements of various classes of customers. States also that in UK companies' sales structures it is apparent that salesmen are usually deployed on a geographical territory basis. Examines a case example of a hypothetical firm in the softwood timber importing and distribution business, and discusses this in detail, using an analysis sheet for explanation. Concludes that although the case study relates only to a single firm in one industry there is good reason to suspect there are many firms in a similar position, some of who are particularly liable to experience the problems discussed.